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Nectar Lifescience Ltd. (NECLIFE) - Chairman Speech

Company chairman speech

NECTAR LIFESCIENCES LIMITED
ANNUAL REPORT 2006-2007
CHAIRMAN'S REPORT
Dear Shareholders.
I am delighted to inform you that your company, in line with our
objectives, has yet again recorded very consistent and vibrant performance
during the financial year 2006-07. During the year 2006-07, your company
achieved sales turnover of Rs. 46518.14 Lacs registering 62.61% increase
over the previous year (Rs.28606.85 lacs). Income before interest and
depreciation increased to Rs. 9139.65 lacs registering 89.59% increase over
the previous year (Rs. 4820.81 lacs). The net profit increased to Rs.
4835.82 lacs registering 89.27% increase over the previous year (Rs 2555.01
lacs). Your Directors expect a consistent growth in company's performance
in the years to come.
The most remarkable feature of the performance of your company has been the
quality of our performance particularly in exports. During the previous
year, distribution of sales was 67% domestic and 33% exports. This year
exports have upsurged to 45% with domestic at 55%. We expect this trend to
further accelerate more towards exports with an estimated 60:40 split
between exports & domestic in the next financial year.
As a part of one of the fastest growing economies of the world i.e. India,
our aspirations and aim is to be in sync & contribute that very little but
significant part to India's increasing global presence besides catering to
one of most robust domestic consuming market of the world.
One of the most significant aspect of this year has been marked improvement
in performance of your company through ongoing expansion of the global
business which includes presence in both the regulated markets like US,
Europe & the most happening BRIC (Brazil, Russia, India & China) markets
besides 35 other geographies of the world.
This rapid growth of your company is greatly attributed to a tremendous
amount of cohesion between the management team as well as dedication and
exemplary hard work put in by a highly skilled team of officers/executives,
work force and other stakeholders of the company. In the lifesciences
segment, where India is a very significant player globally, it is extremely
essential and important to be a highly integrated player to not only
survive in highly competitive environment but also to continue to register
a sustainable growth as your company has done over the last few years. In
this respect, your company is optimally integrated backwardly through the
active pharmaceuticals ingredients segment particularly Cephalosoprins
which is the biggest segment of antibiotics/anti bacterials part of
pharmaceuticals the world over.
In terms of forward integration our plant at Baddi in Himachal Pradesh,
India for Finished Dossage Forms (FDF) has already gone on stream. This is
a state of the art FDF facility which is comprehensively compliant with the
highly stringent requirements of regulatory bodies like US FDA, EDQM ,
MHRA, MCC, TGA etc to name a few. It has global capacities for both Orals &
Steriles forms and it is to the credit of a highly motivated team in your
company which has put together an excellent global sized facility in place
in record time. This facility strategically positions your company in the
CRAMS (Compact Research & Manufacturing Services) segment of Lifesciences
in which India has registered the highest segmental growth in Lifesciences
industry. Additionally as part of the horizontal expansion, your company
has also set up Empty Hard Gelatin Capsules (EHGC) Facility in Baddi which
also is one of the most modern and technologically advanced facility. This
unit will be the only EHGC unit in Baddi catering captively to practically
all major Indian pharma units which are located in and around Baddi, Paonta
Saahib, Uttaranchal & other tax exempted zones. The unit has been already
operationalised. We expect to expand this unit also to global scale with an
eye on the highly lucrative exports market.
As a part of our highly successful innovative diversification strategy,
your company has emerged as one of the leading global players in
phytochemicals & herbal products for Menthol Crystals, Flakes and various
derivatives. Within a very short time in this financial year and in the
next financial year you will appreciate extremely good and robust
contributions from this very important and critical sector, which in a way
is also related to pharmaceuticals. Your company is enhancing the
capacities of phyto-chemicals to global levels which will contribute
significantly to both the top and bottomline of the company in the coming
years.
I take this opportunity to record my gratitude and appreciate tremendous
work put in by one & all of your company right from the worker to the top
management for their dedication and highly value added contributions which
has collectively led to this robust performance of your company. I am
confident that all the stake-holders of the company will continue to
register even better performance in the forthcoming eventful year 2007-08
when we can come back to you with even better performance than this
financial year.
I also take this opportunity to thank all other strategic stake-holders
like the financial institutions, investors, our bankers and others without
whose help and continued support we would not be able to do what we have
done. I am absolutely reassured and confident that we will not only
continue to get this support from them but even exceed your expectations so
as to enable the company to continue to perform even better.
With Warm Regards
Yours Sincerely,
Place: Chandigarh SANJIV GOYAL
Date : 03.09.2007 Chairman & Managing Director